Yoon stresses K-culture in raising Korea's export targets

Politics

Published: 23 Feb. 2023, 18:16

Yoon stresses K-culture in raising Korea's export targets

President Yoon Suk Yeol presides over an export strategy meeting at the Blue House in central Thursday. [NEWS1]

President Yoon Suk Yeol set Korea's export target at $685 billion this year, up 0.2 percent from 2022.

The Ministry of Trade, Industry and Energy reported the increased target at the fourth export strategy meeting presided over by Yoon at the Blue House in central Seoul on Thursday.

This is an increase of $5 billion from the $680 billion initially set for 2023 by the government at the end of last year.

Korea also plans to double exports of cultural content to $25 billion by 2027 by expanding its overseas markets in North America, the Middle East and Europe.

To this end, Yoon stressed he will encourage the diversification of exports by promoting "K-food" and "K-content," securing global interest in Korean cuisine, brands and cultural content through the widespread popularity of K-pop.

During the meeting, Yoon called on all ministries to set individual goals and designate an official to oversee export targets, while collaborating on the whole as "one team."

He stressed that the government will focus on promoting exports and winning overseas contracts in 12 sectors, including nuclear power, defense, overseas construction, agriculture and fisheries.

"Experts forecast a 4.5 percent decline in exports this year due to the global economic slowdown and falling semiconductor prices," said Yoon. "We must raise our target from last year and do our best to reach it… If exports slow and the trade deficit continues, Korea, with the high external dependence of its economy, will face great difficulties."

Korea's outbound shipments reached a record $683.9 billion last year, a 6.1 percent rise on-year, but logged a trade deficit of $47.2 billion because of a spike in imports. It was the first time that the country suffered a trade deficit since 2008.

"As K-content gains worldwide popularity, exports are increasing and creating tremendous economic value in this sector," said Yoon. "Relevant ministries should do their best to make high-value K-content by connecting it with fashion, tourism, food and the IT industries."

A total of 18 ministries and agencies will contribute to export target expansion, including those not traditionally related to export industries, including the Education Ministry, Environment Ministry and Defense Ministry.

Yoon ordered all officials to "run as salespeople" to revive the economy and bolster exports, reiterating he himself is Korea's "No. 1 salesman."

"I have repeatedly emphasized that the only way to break through the complex crisis situation is through exports and vitalization of startups," said Yoon. "Going forward, we will put the economy and exports at the center of all diplomacy and fight to the death at the forefront."

The Trade Ministry said the Korean government will spend 1.5 trillion won ($1.15 million) to support exports and provide up to a record-high of 362.5 trillion won in trade financing to exporters.

It will strengthen the competitiveness of key industries, including semiconductors and displays, and increase providing customized support in 12 sectors to cinch large-scale deals.

The ministry said it plans to provide more tax cuts for chipmakers and invest 2.9 trillion won in research and development in lucrative fields such as chips and artificial intelligence (AI).

Yoon also promised to expand tax credits for the manufacturing industry, increase investment in developing electric vehicle (EV) technology and increase financial assistance for the shipbuilding industry. Other new export sectors such as agricultural and fishery products, the digital industry and biohealth will also be supported.

The Ministry of Culture, Sports and Tourism reported to Yoon its plan to increase K-content exports by an average of 12.3 percent every year to achieve $25 billion in 2027.

K-content exports reached an all-time high of $12.4 billion in 2021.

The ministry expects to expand its content markets in North America, Europe and the Middle East, as China, Hong Kong, Taiwan and Japan currently account for more than 50 percent of K-content exports currently.

North America accounts for 13.3 percent of content exports, Europe for 10.9 percent and other regions including the Middle East only 5.8 percent, according to the ministry.

It will also diversify the content market by going beyond the global popularity of Korean film, dramas and K-pop, especially focusing on expanding the overseas webtoon market.

The ministry outlined the so-called 3E strategies for K-content exports: "expansion" of the export market, "extension" of the content industry and utilization of the premium "effect" of the global popularity of Korean content.

The government plans to inject about 1.1 trillion won into the content industry this year and possibly next year.

Yoon also encouraged reviving the tourism industry and noted that "tourism is not only to see scenery and cultural assets, but to study human culture and history, and to show our industries as a whole."

The meeting was also attended by executives from content production companies and gaming companies. This included entertainment giant CJ ENM, RaemongRaein, the production company behind hit drama series "Reborn Rich," and actor Park Sung-woong.

BY SARAH KIM [kim.sarah@joongang.co.kr]